The housing market has been the driver of this growth, improving consumer confidence. One big uncertainty is the Scottish independence referendum: a constitutional crisis would certainly lead to a slowdown given the uncertainty it would bring.
Looking into 2014, it would appear that overall there are fewer tail risks to be concerned with than recent years. There will no doubt be a few surprises, but provided growth continues to improve and is supportive of earnings, markets can make progress.
Article continues after advert
Gary Potter is co-head of multi-manager at F&C Investments
Page 2 of 2
